Why would someone choose Arbitration as an alternative method of dispute resolution?
Arbitration is an essentially private contractually binding dispute resolution process conducted before an independent arbitrator or panel of arbitrators who act as the judge on the dispute before them.
Those who are appointed arbitrators and are asked to decide on matters before them, are appointed by the parties or an appointing body on the basis of their particular knowledge, expertise or experience in a particular field and of course their expected honesty and impartiality.
These attributes are perhaps the real reason why arbitration is often the preferred method of dispute resolution in technical disputes, disputes in particular industries or areas of commercial activities or where cross border transactions between counter parties who chose a neutral method, venue or jurisdiction where disputes can be resolved.
Arbitration, especially international arbitration, should be a speedy and efficient method of resolution of disputes in commercial relationships. Alternative dispute resolution (ADR) is popular in the construction, insurance, shipping and trade fields where expert arbitrators can draw on their expertise and knowledge in particular fields to produce the type of awards which should be enforceable, with limited need for the Courts to intervene either during or subsequent to the end of the arbitration process.